Based solely upon the following sets of circumstances,indicate below which set gives rise to a sales type or direct financing lease of a lessor: Transfers Contains
Ownership bargain
By end of purchase
Lease? Provision?
A) No Yes
B) Yes No
C) Yes Yes
D) No No

Question

Quizplus · Accepted Answer

A sales type or direct financing lease occurs when there is a transfer of ownership at the end of the lease term and a lease provision is included in the agreement. Choice C is the only set of circumstances that meets both criteria.

Based Solely Upon the Following Sets of Circumstances,indicate Below Which